How to Streamline Lloyd’s Reporting Using Analyze Re

Syndicates in the Lloyd’s of London are required to submit a series of core and non-core market reports in agreement with guidelines set out by Lloyd’s that ensure profitable business planning and monitoring to safeguard their high standards of underwriting and risk management. Lloyd’s collects this data from the syndicates so it can gain a probabilistic view of syndicates’ exposures to natural catastrophes. This allows Lloyd’s to calculate a market view of natural catastrophe exposures used within the Lloyd’s Internal Model (LIM) for capital setting. There are two series of reports required quarterly and twice a year respectively.

The first is the Lloyd’s Catastrophe Model report, or LCM, and this feeds into the entire market’s LIM. On a quarterly basis, syndicates must submit a series of event loss tables (ELTs) that represent their gross, net, and final net loss positions for all regions, perils, and classes of business in which they write catastrophe business. Along with the current position, they must account for future growth and apply forecast factors to these ELTs in a separate report.

The second is the Lloyd’s Realistic Disaster Scenarios (RDS) report. Twice each year syndicates must report exposure accumulations and modeled losses against stress test scenarios devised by Lloyd’s. These are required by regulators to ensure capital requirements are met for realistic natural disaster events.

Quick and Easy

Quite often, the report deadlines are ill-timed with property/casualty events, such as hurricanes or cyber attacks, and can coincide with other quarterly reports required by internal company stakeholders, or may consider classes of business in run-off or that have been recently added to a syndicate’s portfolio. This may require multiple model runs in Touchstone® or Touchstone Re™ and can often detract from other tasks. As such, cat modeling and exposure management teams at syndicates spend a significant amount of time on the process of preparing reports as opposed to the analytics within them.

Enter Analyze Re into the equation: a high-performance computing engine that can store syndicate ELTs by region/peril, class of business, and for a variety of different loss perspectives. Marrying the Excel-driven functionality and processing power of Analyze Re with LCM and RDS templates provided by Lloyd’s, syndicates can quickly and easily populate the reports with the necessary ELTs.

New class of business to account for in your 1/7 report? Not an issue—the ELTs can be uploaded directly to the Analyze Re cloud via Touchstone or Touchstone Re’s ExportExpress™ tools, tagged with the relevant metadata, and added to the portfolio to then be split by the relevant region/peril/class of business identifiers.

Do you need to project future growth for the LCM report? This is also not a problem. Analyze Re offers native support to load losses at the region, peril, and/or class of business level to assist with business planning and meet the LCM requirements.

With these reports now generated and available for “rinse and repeat” exercises the following quarter, cat modeling and exposure management teams can spend more time on analytics and less time on process. This is particularly valuable with competing priorities and preparing for unknown circumstances such as real-time natural catastrophes, inquiries from underwriters on account-level risk, or allocating time to rolling out new internal products.

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